UBS released on Thursday a new research note commenting on Ford Motor Co.‘s newly announced EV business restructuring, which will give the Detroit automaker a “new end-to-end organization, Product Creation and Industrialization.”
Analyst Joseph Spak said in the note that the reorganization could improve execution and efficiency across its vehicle development process, resulting in more “on-time, on-budget launches.”
The Swiss bank reiterated the firm’s Buy rating on Ford stock, a few days after having upgraded it, citing a “credible path” to earnings per share (EPS) above $2 by 2027.
Ford reported adjusted diluted EPS of $1.09 in 2025, against a GAAP EPS of about -$2.06.
UBS reaffirmed its $15.00 price target in both notes. The firm first set that level in mid-January, raising it from $12.50 just a week after reiterating the lower figure.
Based on Ford‘s Wednesday close of $12.71, the target implies 18.0% upside potential.
The last time Ford‘s stock traded above the $15 mark was in February 2022.
Last year, the stock traded between $8.03 and $13.84 — the 2025 high reached in the final weeks of the year.
After closing the year at $12.98, the company saw its shares jump as high as $14.80 in late February, before ultimately dropping to a yearly low of $11.11 amid the impact of the geopolitical conflict in the Middle East.
As of press time, the company’s stock was trading 1.9% lower at $12.47 on Thursday.
Product Planning
Ford Motor Co. announced “the establishment of a new end-to-end organization, Product Creation and Industrialization” with the automaker saying that the move aims “to deliver one of the most intensive product, software, and services rollouts” in its history.
The analyst said Ford‘s move “makes sense” as the company pushes towards increased efficiency.
“Conceptually, this type of reorganization makes sense,” the analyst wrote. “Thinking about the product (and planning) more integrated and holistically can create efficiencies.”
Spak pointed to longstanding friction between engineering and manufacturing as a root cause of the launch delays and cost overruns that have weighed on Ford‘s EV business.
“Traditionally, engineering designs the vehicle, manufacturing then industrializes, but there are many steps in between that have caused late-cycle redesigns, cost overruns, and launch delays,” the analyst wrote.
By merging the Electric Vehicle, Digital and Design team with the global Industrial System under Chief Operations Officer Kumar Galhotra, Ford is betting that tighter coordination across the product development chain will translate into fewer costly surprises late in the cycle.
“Better alignment, if achieved, could lead to more discipline and more on-time, on-budget launches,” Spak added.
Software-Defined Vehicles
Spak also flagged the potential upside of embedding software and digital strategy earlier in the development process — a key pillar of Ford‘s pitch around its upcoming Universal EV platform.
“Additionally, with thinking about digital, software and potential monetization upfront, that can lead to better realization of scaling and benefiting from software-defined vehicles,” the analyst wrote.
The comment echoes the rationale Ford itself has put forward, with CEO Jim Farley framing the restructuring as the foundation for “scaling high-quality, software-defined vehicles” with integrated digital experiences and over-the-air upgrades.
On Wednesday, Ford announced the departure of Doug Field, who had laid out the company’s eyes-off driving roadmap and AI assistant plans in January.
2025 Losses
The reorganization follows the $19.5 billion in charges the Detroit automaker took in December to rationalize its EV capacity and product roadmap.
The strategy review late last year included the cancellation of three previously planned models and the end of production of the F-150 Lightning.
The company’s net income turned negative in the final quarter of 2025, with $11.1 billion in losses reported.
Ford‘s EV unit recorded $4.8 billion in losses in 2025.
CFO Sherry House said earlier this year the ‘Model e’ is expected to lose another $4 to $5 billion this year.
Analysts Stance
RBC Capital lowered its price target on Ford earlier this month, joining a cautious tone on Detroit automakers amid the post-credit EV reset.
This Tuesday, Goldman Sachs also changed its price target to $13 from $15, while reiterating a Neutral rating on the company’s stock.
Analyst Mark Delaney said the firm is expecting auto OEMs and suppliers to post softer results this quarter, while noting that rising costs and weak sales are weighing on Ford.
BofA resumed coverage of Ford in March with a more upbeat outlook, pointing to the company’s cost-cutting momentum.
Analyst Alexander Perry highlighted the company’s pivot toward a leaner EV strategy centered on the UEV platform and Ford Energy’s battery storage push under newly appointed president Lisa Drake.
